Mr?Man will keep his answers short and simple but remember a community foundation can be flexible in responding to your interest in creating a fund. The Clarion County Community Foundation will know ways to help you achieve your charitable goal you may not have thought of.

The first step for the donor is to explain what they feel is motivating them and what they hope to achieve. It is from this sharing that the foundation and the donor become partners in the creation and administration of a restricted fund.

An endowed fund is one in which all donations are invested for income and growth. Those donations throughout the history of the fund plus the income retained for growth become the principal held in trust by the foundation.

A restricted fund is one that names one or more nonprofits as recipients of the income produced by the principal held in trust and designated as income available for grants.

A nonprofit is any organization engaged in charitable or religious activities and is recognized as a nonprofit by the Internal Revenue Service. The regulations governing recognition as a nonprofit are complex and are best handled by professionals. It is easier to say that nonprofits include churches, non-profit cemeteries, veteran organizations, non-profit social service providers, food banks, non-profit private schools, non-profit hospitals, conservation organizations, colleges and universities. When in doubt, ask the nonprofit.

#17 Who can create an endowed restricted fund?

An individual, family, circle of friends, or an organization may create an endowed restricted fund with a community foundation because the foundation is a state chartered fund trustee. Donors on their own face financial hurdles and legal requirements in setting up trustees. Setting aside a savings account or CD by naming it a trust does not remove the principle from access by individuals or officers. This is false security, no better than whistling in the dark.

A fund held by a community foundation will always remain in the community involved. The foundation trustees are elected from citizens living where the fund is dedicated to serve. Records are public.

Mr?Man sees you have additional questions concerning endowed restricted funds, so he will answer them in a few days. Keep watching for my handsome face. Charles Marlin